VR - such a gamble

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Hi all. I know no one can give educated advice tbh but just wondering if anyone has any strong thoughts? 

Currently work for a airport (the airport, not an airline or handling agent). They have just offered company wide voluntary redundancy for the 2nd time in 3 months which tells me how bad things are. Airlines are pulling out and cutting down and passenger predictions have plummeted from 47 million to less than half of that. 

I have been offered 3 months Notice at 80% pay and then 42.5k to leave under VR. 

I currently have 6k of debt Which I would pay straight off. I live with my fiancé in a 1BR flat (her mortgage).  we pay 750 each Into a joint account for all bills mortgage and months food. 

My main concern Is if I don’t take the VR and the company force redundancy at statutory rate I would lose 36k as I would only receive 6.5k stautory redundancy. This would make me feel sick not gonna lie. 

Other option is to not take it and hope that I don’t get made redundant. 

There are so many what ifs? I’ve been in aviation for 12 years so looking for other jobs with my skills that pay as well looks very unlikely tbh  

Anyone else been in similar predicament? Thoughts?

Comments

  • sharpe106
    sharpe106 Posts: 3,559 Forumite
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    Assuming you are currently on furlough? How long have you worked there for? 
    Yes you could pay your debt of in one quick go. 
    Nobody knows if they will force it on you or if you will not be made redundant. But looking at the airline industry there will be a lot of job losses, you know better then anybody how safe your job is or is not. 
    Like you said you probably have a particular skill set that will not be easily transferable for a similar pay, as lets be honest in the good times that kind of industry with exception of the basic workers have been relatively well paid.  The best thing you can do is have a look around and see what is available, don't forget the competition for jobs will be higher then normal as you will not be the only one made redundant. 
    If the VR is good or not depends what you salary is and how long you could live on that for. 
  • rvoice100
    rvoice100 Posts: 14 Forumite
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    edited 5 June 2020 at 7:07PM
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    Hi thanks for the reply. Good points made. I am on a basic salary of 42.5k and been with the company for 12 years. Offer is for 1 months pay for each year served capped at 12 months pay. So I would basically get the max
  • sharpe106
    sharpe106 Posts: 3,559 Forumite
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    If you were to take it what would you do? it would give you a bit of breathing space. Also how close to retirement are you, might be able to have a life style change, work part time. 
  • daveyjp
    daveyjp Posts: 12,521 Forumite
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    Don't forget the income tax on all redundancy above £30k.
  • wolvesinwales
    wolvesinwales Posts: 2,255 Forumite
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    I am in a similar situation also aircraft industry. Just one question,will you definitely only get statutory redundancy if you dont take voluntary ?  I ask because where i work the terms will be the same whether its voluntary or compulsory..

    WHOOOOSHHHHHHHHH……..
    Blimey what was that ?
    That was your life mate
    Oh I wasn’t quite ready can I have another go ?
    Sorry mate only one per person.
  • Grumpy_chap
    Grumpy_chap Posts: 14,889 Forumite
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    I don't understand where the gamble is.
    The OP is being offered a year's salary plus 3 months x 80% pay.  Over half of that will be tax-free.
    The OP is at the max of the rules for his employer, so it is unlikely a future redundancy deal will ever be better, but could be worse.
    How many times in a life-time do many of us get to have a whole year's salary as a lump sum?  
    The OP then has time to choose and plan for the future.  
    If the industry picks up, then that even gives the option to go back to virtually the same job.  If the industry does not pick up, then compulsory redundancy will likely follow in a few months when the employer does not have the funds to provide enhanced redundancy. 
    To be honest, (and as a taxpayer), with all the aircraft industry bleating to the Government and saying they need giant grants to survive, taking that money to just use as redundancy payments seems wrong, but if the OP can get get, then no-one can blame the OP for taking it.
  • sharpe106
    sharpe106 Posts: 3,559 Forumite
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    The gamble is depending on what job the OP does, if they do a fairly niche job then even if lots of people are made redundant there be a good chance they would not be one. 
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    sharpe106 said:
    The gamble is depending on what job the OP does, if they do a fairly niche job then even if lots of people are made redundant there be a good chance they would not be one. 
    On the flip side, they can go look for any work, without having to worry about finances whilst the market stabilises. 
  • sharpe106
    sharpe106 Posts: 3,559 Forumite
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    I agree from what OP has put I would probably be going. 
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